Q&A
Discussion on commercial building occupancy and market viability
0:33:27
·
120 sec
Council Member Susan Zhuang inquires about the viability of the proposed 10-story commercial building, given that nearby commercial buildings have been empty for at least two years. Ken Fisher responds by explaining their approach to pricing, financing, and attracting tenants.
- The developers will price the building for the market and seek bank financing based on their underwriting.
- They believe the demand exists, especially due to the building's proximity to subway stations.
- The project aims to offer different amenities and potentially cater to smaller service offices rather than just large credit tenants.
Susan Zhuang
0:33:27
Thank you, Tier.
0:33:29
And after Tier last question, I think I have a additional question about the 10 storage commercial building.
0:33:37
There's commercial buildings nearby there, as I know, still empty for 2 years already at least as I know.
0:33:47
How do you see this development is very different from the other ones.
0:33:53
So you're able to find attendance.
Ken Fisher
0:33:59
Thank you, Council member.
0:34:00
I can't speak specifically to other buildings in area.
0:34:03
And quite frankly, what's happened with the office market in New York has been unusual since the pandemic.
0:34:09
So whatever their relationship is with their lenders, whatever rents that they projected may account for their difficulties in renting up.
0:34:21
Our clients will price this for the market.
0:34:27
They will need a bank to finance it that believes in their under writing.
0:34:33
If that is viable now as they believe it is based on their own experience and the rents that they pay in some cases for their own offices, they'll be able to move forward the market will ultimately dictate what that is.
0:34:48
Again, with the other buildings, I don't know what size 4 plates they're offering, what amenities they're offering.
0:34:55
There's been a flight to quality and office buildings around the city.
0:35:00
There's also a dichotomy between some landlords that only want what are called credit tenants, companies that can guarantee the leases.
0:35:10
Others focus more on smaller service offices.
0:35:15
So we think that the demand is there, the fact that it's next to the subway station and potentially an IBX station at some time in the future.
0:35:23
We think it'll make will be considerably more attractive than any other product in the neighborhood.
